EIAA Mediascope Europe & Online Shoppers

1. EIAAMediascope Europe & Online Shoppers January 2008Conducted by:

2. EIAA Objectives • Champion and improve the understanding of online advertising as a medium • Promote the efficiency of online advertising as part of the ‘media mix’ • Think regionally, benefit regionally and at local level • Increase the total value of investment into online advertising

3. Background • The European Interactive Advertising Association (EIAA) was formed in 2001 to act as a common, pan-European voice for the interactive advertising industry • Members are: • EIAA has made significant investment in research, particularly in the areas of media consumption, media spend and advertising efficiency • As part of this commitment to research, the EIAA has for the past five years conducted a large scale study of media consumption habits in Europe • SPA has conducted the survey since 2005

4. Presentation agenda 1. Introduction • Research objectives • Methodology and sample 2. Mediascope Europe • Weekly internet use • Time spent online • Frequency of internet use • Broadband penetration • Online activities • The impact of the internet • Websites visited 3. Online Shoppers • Online research • Percentage of online shoppers • Number of items online shoppers buy online • Amount of money online shoppers spend online • The products online shoppers buy • Online shoppers are heavy internet users

5. The broad aim of this study is to measure and track changes in media consumption patterns by various demographic segments and nationalities. This work will show when, why and how often people are using different media – in particular use of the Internet for content, communication and commerce Research objectives OVERALL PROJECT OBJECTIVE

6. Methodology and sample Scandinavia • Sweden - 333 • Norway - 333 • Denmark - 334 • Belgium - 500 • Netherlands - 501 Germany – 1009 TOTAL SAMPLE UK – 990 7008 interviews across 10 European countries Within each territory quotas were set to ensure our sample was representative of each market. Quotas were applied on: • age, gender, education and regional distribution within countries France – 1000 Spain – 1008 Italy – 1000

7. Methodology and sample • 7008 Computer Aided Telephone Interviews (CATI) were conducted by Synovate on behalf of SPA and the EIAA in 10 countries across Europe • A sample size of 7008 provides accurate data to ± 1.1 – 0.8% at the 95% confidence level • Fieldwork took place in all territories between 3rd – 28th September 2007 • Interview length ranged from 25-30 minutes • The application of quotas ensured that representative samples were achieved in each country • quotas on age, gender, education and regional distribution • Results at the total level were weighted to take into account the different countrys’ population sizes. Using 2007 data from the UN the following weighting matrix was developed

8. Mediascope Europe • Weekly internet use • Time spent online • Frequency of internet use • Broadband penetration • Online activities • The impact of the internet • Websites visited

9. Weekly internet use grows 6% Q1a/2a/3a. In a typical 7 day week, that is Monday to Sunday, can you tell me if you use the internet? • Internet users across our 10 countries have increased in number by 6% year-on-year to 169 million users per week Total Adult Europeans Adults Typically Online Each Week 2007 296m 2006 2005 +6% 2006-7 145m 159m 169m

10. 6 million more women online Q1a/2a/3a. In a typical 7 day week, that is Monday to Sunday, can you tell me if you use the internet? • Increases in women using the internet mean they are closing the gap on men • The demographic with the highest rate of increase is the Silver Surfers (55+), up 12% year-on-year Women Online +8% Up 6 million to 81.4m weekly users Universe of Internet Users Grows 6% year-on-year Older Europeans Online (55+) +12% Up 3 million to 28.6 users

11. 16-24 yrs internet use almost ubiquitous Q4. In a typical seven day week, on how many days do you use the internet / TV? Q5ai – Q5aiii. In a typical seven day week, approximately how many hours do you tend to spend using the internet / TV? • 16-24 year olds now go online more frequently than they watch TV, for the first time • They’re also spending 10% more time online than watching TV – nearly 15 hours per week Watch TV Use Internet 9 in 10 16-24 year olds are online each week 13.4 Hours Per Week 14.7 Hours Per Week Across 5.7 Days Per Week Across 5.9 Days Per Week Trend likely to continue following year-on-year growth every year since 2004 16-24 year olds spend 16% less time watching TV than Europeans as a whole 16-24 year olds spend 24% more time using the internet than Europeans as a whole

12. Weekly internet use and time spent online • 57% or 169m of all Europeans use the internet in a typical week, rising to 74% of all respondents in Sweden (5.6 million) • Internet users in Sweden spend a lengthy average of 13 hours per week online • Over a third (36%) of all internet users in Sweden spend upwards of 16 hours online • 16-24 year olds in Sweden spend 21% more time using the internet than sat in front of the television

13. 5.6 million online across Sweden Q1a/2a/3a In a typical 7 day week, that is Monday to Sunday, can you tell me if you…? Typical 7 day week Internet use Use the Internet Change from2006 Change from2006 2007 Millions 2007 Millions Swedish Average 74% [Base: All Respondents in Europe (n=7008)] [Base: All respondents in Sweden (n=333)]

14. 16-24 year olds in Sweden spend 21% more time using the internet than watching TV Q5ai – Q5aiii. In a typical seven day week, approximately how many hours do you tend to spend using each media? Hours spent using each media in a typical week (16-24 years) Average number of hours per week [Base: All 16 - 24 year old Sweden respondents using each media (TV=38, radio=32, internet=45, newspapers=36, magazines=23)]

15. Nordics provide most everyday users Q4. In a typical seven day week, on how many days do you use the internet? • Almost half (47%) of European internet users now go online everyday of the week Who? Where? (Top 5) Go online Go online Go online Go online Go online Go online Go online

16. Frequency of internet use • Swedish internet users access the internet 5.7 days per week • 58% of Swedish internet users use the internet seven days a week, rising to 82% amongst 16-24 year olds • Swedish 16-24 year olds continue to access the internet more frequently than they watch TV • 91% of this younger demographic use the internet between 5 and 7 days each week while only 79% watch TV as regularly

17. Swedish internet users access the internet 5.7 days per week Q4. In a typical seven day week, on how many days do you use the internet? By Country By Demographic Swedish Average 5.7 European Average = 5.5 [Base: All European internet users (n=4017)] [Base: All Sweden internet users (n=248)]

18. Swedish 16-24 year olds access the internet more frequently than they watch TV Q4. In a typical seven day week, on average how many days do you use TV/internet? Internet (16-24 yrs) TV (16-24 yrs) % using TV between 5 and 7 days per week % using Internet between 5 and 7 days per week Number of days per week Number of days per week [Base: All 16 - 24 year old Sweden TV viewers (n=38)] [Base: All 16 - 24 year old Sweden internet users (n=45)]

19. THE BROADBAND LANDSCAPE

20. Broadband penetration reaches 8 in 10 QC3. Thinking about the place where you use the Internet the most, do you have a broadband connection? • Broadband penetration increases again with 8 in 10 Euro users now enjoying a high speed connection where they access most (their main point) Broadband Penetration: Europe (%) Most likely group to use Broadband 85% of men 87% of 25-34 year olds

21. Almost 9 out of 10 Swedish internet users now use a broadband connection QC3. Thinking about the place where you use the Internet the most, do you have a broadband connection? Broadband connection 2007 Year-on-year change [Base: All internet users (n=4017)]

22. OUR RELATIONSHIP WITH THE INTERNET

23. Hotmail Email and Search remain key Q7b. Which of the following types of web activities do you use at least once a month? Key Web Activities Used Search is still the most undertaken activity 87% 42% now communicate through social networking sites (increasing to 66% amongst 16-24 years olds) Web based email is used each month by 81% of online Europeans

24. Growth areas in internet activities Q7b. Which of the following types of web activities do you use at least once a month? Top 5 Growth Areas +150% Watching Film, TV or Video Clips +42% Ratings & Reviews +18% TV & Film Downloads +17% Podcasting +15% P2P File Sharing

25. Broadband penetration and online activities • 41% of internet users in Sweden now communicate via social networking sites at least once a month • Listening to the radio is particularly popular in Sweden when compared to the European average (41% vs. 31%) • The number of Swedish people who contribute to ratings and reviews has grown 383% since 2006 • Swedish internet users also enjoy sharing information online: • The number of Swedish internet users that create and share content has grown +111% since 2006 • Nearly a third (29%) of Swedish internet users contribute to rating and review sites • Over a quarter (26%) now share their thoughts on forums • 65% of respondents in Sweden stated that they can’t live without at least one activity on the internet

26. The number of Swedish people who contribute to ratings and reviews has grown 383% since 2006 Q7b. Which of the following types of web activities do you use at least once a month? [Base: All Sweden internet users (n=248)]

27. Nearly a third (30%) of Swedish internet users claimed they couldn’t live without email Q7bi. And of the ones that you have used, which of the following web activities that you undertake monthly could you not live without? Top 8 Website Activities cannot live without (%) 65% of respondents in Sweden cannot live without at least one activity on the internet [Base: All Sweden internet users (n=248)]

28. 13% of Swedish users were not aware they could create or share content online Q7bii/biii/biv/bv. You’ve said that you do not currently use the internet to create or share content/watch or download TV, film or video clips/download music/communicate via social networks. Why is this? Reasons why do not use Internet to create and share content, watch or download film, TV or video clips, download music or communicate via social networks [Base: All Sweden internet users who do not create or share content (n=202), watch or download TV/video clips (n=153), download music (n=52) or communicate via social networks (n=25)

29. News remains core to driving internet use Q7a. Which of the following types of websites do you visit at least once a month? • An easy accessible source of instant information, results in the internet being a perfect format for delivering news and local information News 65% Local Information 52% Travel 51% Music 46% Holidays 46%

30. 76% of internet users in Sweden access news sites at least once a month Q7a. Which of the following types of websites do you visit at least once a month? Top 10 Websites Visited (%) Next 11 Websites Visited (%) [Base: All internet users (n=4017) and all Sweden internet users (n=248)]

31. The impact of the internet and websites visited • Almost all internet users in Sweden (99%) admit to doing something less often as a result of the internet • 50% use other forms of media less in favour of the internet: • 31% admit to watching less TV • 14% do not listen to as much radio • 20% read newspapers less frequently • 42% of 16-24 year old internet users in Sweden claim their TV consumption has dropped off as a direct result of the internet • 76% of internet users in Sweden access news sites at least once a month, making news the most popular type of website visited – closely followed by banking and finance (74%) and local information (59%) • Banking and finance (74% vs. 50), Property (36% vs. 22%) and TV sites (26% vs. 16%) are far more popular in Sweden when compared to the European average

32. Online Shoppers • Online research • Percentage of online shoppers • Number of items online shoppers buy online • Amount of money online shoppers spend online • The products online shoppers buy • Online shoppers are heavy internet users

33. Online research • 40% of all European online shoppers have changed their mind about which brand to buy following research on the web • Online shoppers in the UK are the most likely to be influenced by information on the internet (49%) while Italians are the least likely to change their mind (27%). • In Sweden 42% of online shoppers changed their brand after online research • European consumers are most likely to change their mind as a result of online research when it comes to buying electrical goods - 59% changed their minds on brand • Over half (59%) of online shoppers cite that websites of well known brands are an important source of information when researching or considering a product or service • In Sweden almost two thirds (61%) of online shoppers find reviews/opinions on the internet written by experts an important source of information

34. 42% of Swedish online shoppers changed their mind after online research Q17a. After researching on the internet, have you ever changed your mind about which brand of product you purchased? Effect of online research on brand chosen • Brits are the most likely to be influenced by information on the internet (49%) while Italians are the least likely to change their mind (27%) [Base: All Online Shoppers online researchers (n=3352)]

35. 65% of Swedish online shoppers changed which brand of electrical good they would buy after online research Q17b. In which of the following product categories, if any would you change your mind about the brand you purchase after researching online? Effect of online research on brand chosen - products categories • European consumers are most likely to change their mind as a result of online research when it comes to buying electrical goods - 59% changed their minds on brand – rising to 65% amongst Swedish online shoppers [Base: All Online Shoppers online researchers that changed their mind (n=1362)]

36. Over half (59%) of online shoppers cite that websites of well known brands are an important source of information Q5h. Which of the following to do you consider to be an important source of information when researching or considering a product or service? Sweden (Online Shoppers) Europe (Online Shoppers) % % [Base: All Sweden (Online Shoppers) internet users (n=204)] [Base: All Online Shoppers internet users (n=3352)]

37. Percentage of online shoppers, number of items bought and amount of money spent online • A massive 80% of European internet users have bought a product or service online, rising to 82% in Sweden • These European online shoppers made 1.3 billion purchases in just a six month period, spending an average of €747 each online. • The UK (486m) and Germany (342m) made the most purchase • In the UK, Germany and Denmark female online shoppers made more purchases than men • Norway (€1203) and the UK (€1195) spent the most money online per person • In Sweden online shoppers made a total of 31m online purchases spending an average of €948 online in just six months

38. 80% of European internet users have bought products/services online… Q15/Q16/Q17. Have you ever researched/bought online or researched & bought off line any of the following products/services? Proportion of Internet users that have researched, bought online or researched and bought offline [Base: All Europe internet users (n=4166)]

39. … in Sweden the percentage of internet users that shop online has grown +78% since 2004 Q15/Q16/Q17. Have you ever researched/bought online or researched & bought off line any of the following products/services? Proportion of Internet users that have researched, bought online or researched and bought offline [Base: All Sweden internet users (n=248)]

40. 82% of Swedish internet users have bought a product/service online Q16. Have you ever bought online any of the following products/services? • Norway lead in terms of the percentage of internet users who shop online, closely followed by the UK [Base: All Europe internet users (n=4166)]

41. In a six month period the average Swedish online shopper spent €948 online Q19. In the last six months, approximately how much money would you say you spent in total on all your online purchases? €501+ €0-500 [Base: All Online Shoppers purchasing online (n=2839)]

42. Products bought online • The percentage of European online shoppers buying particular products and services has increased significantly since 2006 • The number of online shoppers purchasing mobile phones online has increased by 33%, financial products purchases are up 22%, home furnishings up 18%, car accessories up 13% and holidays up 11% • In Sweden purchasing mobile phones (+129%), Renting DVDs (+100%), buying toys (+66%), electrical goods (+33%) and downloading music (+23%) online has increased significantly since 2006 • Overall, the most popular online purchase across Europe is travel tickets (54%), closely followed by holidays (42%), books (40%), concert/theatre/festival tickets (38%), clothes (33%) and electrical goods (33%) • The research highlights the gender differences of online shoppers • Female shoppers focus on clothes (40% vs. 27% of men) and holidays (46% vs. 38% of men) • Male online shoppers go for electrical goods (39% vs. 27% of women) and CDs (25% vs. 20% of women).

43. The percentage of online shoppers buying particular products and services has increased significantly Q16. Have you ever bought online any of the following products/services? • In Sweden purchasing mobile phones (+129%), Renting DVDs (+100%), buying toys (+66%), electrical goods (+33%) and downloading music (+23%) online has increased significantly since 2006 [Base: All Online Shoppers who have bought a product/service online (n=3352)]

44. The most popular online purchase across Europe is travel tickets (54%), closely followed by holidays (42%) Q16. Have you ever bought online any of the following products/services? Most popular products/services bought online by online shoppers • In Sweden travel tickets, holidays and concert/theatre/festival tickets are particularly popular online purchases [Base: All Online Shoppers who have bought a product/service online (n=3352)]

45. European Female online shoppers buy far more clothes online and men buy more electrical goods Q16. Have you ever bought online any of the following products/services? Products/services bought online – male vs. female online shoppers • In Sweden female online shoppers are far more likely to buy travel tickets (77% vs. 69%) and holidays (61% vs. 52%) and men, as with the European average, buy more electrical goods online (48% vs. 17%) [Base: All Online Shoppers who have bought a product/service online (n=3352)]

46. Heavy online users • European online shoppers are heavy users of the internet • 84% of online shoppers go online via a broadband connection (compared to 70% of internet users who do not shop online) • On average they use the internet on 5.7 days each week, spending an average of 12.3 hours online (above the European average of 11.9) and over half (51%) log onto the internet every day

47. 84% of European online shoppers use broadband at their main point of internet connection, rising to 90% in Sweden QC3. Thinking about the place where you use the Internet the most, do you have a broadband connection? Broadband connection - Online Shoppers 2007 Year-on-year change Compared to 70% of internet users who have not bought a product/service online [Base: All Online Shoppers using the internet (n=3352)]

48. European Online shoppers spent an average of 12.3 hours online each week Q5ai – Q5aiii. In a typical seven day week, approximately how many hours do you tend to spend using the internet? Hours spent using the Internet in a typical week • In Sweden online shoppers spend 13.6 hours online each week, the highest number of hours spent online amongst online shoppers across Europe Hours [Base: All Online Shoppers using the internet (n=3352)]

49. Across Europe online shoppers spend an impressive 5.7 days online each week… Q4. In a typical seven day week, on how many days do you use the internet? Online Shoppers Change from2006 • In Sweden online shoppers spend 6 days online [Base: All Online Shoppers using the internet (n=3352)]

50. …over half of all online shoppers use the internet 7 days a week Q4. In a typical seven day week, on how many days do you use the internet? Online shoppers using the internet 7 days a week • In Sweden nearly 2 thirds (64%) of online shoppers go online every day Percent of 7 days a week users [Base: All Online Shoppers internet users (n=3352)]